PSE Index Falls 1.10% as Middle East Uncertainty Weighs on Investor Sentiment

The Philippine Stock Exchange (PSE) index fell on Friday as continued uncertainty in the Middle East dampened investor sentiment, closing at 6,236.44 points, down 69.31 points, or 1.10 percent.

The Philippine Stock Exchange (PSE) Index, July 31, 2026

The Financials sector declined 1.46 percent, Services dropped 1.57 percent, Holding Firms slipped 0.84 percent, and Property eased 0.23 percent amid concerns that the geopolitical crisis could escalate further across the region.

Meanwhile, the Mining and Oil index surged 4.05 percent on expectations of stronger demand for gold as a safe-haven asset during periods of heightened geopolitical uncertainty.

The Industrials index, meanwhile, edged up 0.15 percent on bargain hunting.

Value turnover jumped to ₱10.81 billion, driven largely by trades related to the PSE index rebalancing scheduled for next week. Maynilad Water Services Inc. is set to replace Converge ICT Solutions Inc. in the benchmark 30-company index.

Despite its removal from the index, Converge ICT climbed 6.10 percent, buoyed by its ₱5-billion share buyback program.

In contrast, Maynilad fell 2.59 percent as investors locked in gains following the announcement, reflecting the market adage, "buy the rumor, sell the news."

Market favorite ICTSI declined on profit-taking, closing at ₱963.00 after volatile trading that saw the stock reach an intraday high of ₱990.00 and a low of ₱962.00.

Philex Mining gained 7.74 percent to ₱9.05, while Meralco ended unchanged at ₱480.00 after a roller-coaster trading session that saw the stock hit an intraday high of ₱506.50.

Ayala Land Inc. (ALI) also advanced on bargain hunting, rising 0.48 percent to ₱16.90.

Foreign trades totaled ₱10.17 billion, resulting in net foreign selling of ₱1.04 billion, with foreign buying at ₱4.56 billion and foreign selling at ₱5.606 billion. Market breadth remained negative, with 93 decliners, 88 advancers, and 63 unchanged issues.